Erickson Air-Crane buys back helicopter for $22M

Erickson Air-Crane Inc. on Friday said it spent $21.75 million to reacquire a heavy lift helicopter it manufactured and sold in 2009 to a California utility.

The Portland-based company (NASDAQ: EAC), a manufacturer and operator of heavy lift choppers, said the deal with San Diego Gas & Electric Co. includes the helicopter — called the Sun Bird Aircraft — and its associated parts inventory and accessories.

The deal will help Erickson capitalize on opportunities for its aerial services industry to go after business in hot markets such as oil and gas and powerline construction in South America, CEO Udo Rieder said in a news release.

Though Erickson is a manufacturer of the S-64 Aircrane, the vast majority of its revenue comes from operating its own Aircrane fleet as a service provider to industries such as energy exploration, logging, and fire fighting. Of the $65.5 million in revenue the company reported in two quarters so far this year, 92 percent has come from its aerial services division.

The acquisition of the Sun Bird expands Erickson's fleet to 18 Aircranes.

In lieu of owning the aircraft, San Diego Gas & Electric will now lease an Aircrane for the three-month period from September through November for use in fire suppression support, with an option to renew the lease for the same period each year through 2016.